Saturday, 19 January, 2019

$1.6 billion Toyota-Mazda plant going to Alabama, source says

2017 Toyota Corolla XSE Front Three Quarter In Motion 05 $1.6 billion Toyota-Mazda plant going to Alabama, source says
Nellie Chapman | 10 January, 2018, 21:12

A person briefed on the decision tells the Associated Press that Japanese automakers Toyota and Mazda have picked Alabama as the site of a new $1.6 billion joint-venture manufacturing plant. It will be able to build 300,000 vehicles per year and will produce the Toyota Corolla compact auto for North America and a new small SUV from Mazda, the companies have said.

Alabama and North Carolina were the final two states in the running, but the Charlotte Observer reported North Carolina lost out on the plant.

Trump praised the joint venture announcement, saying in August on Twitter: "Toyota & Mazda to build a new $1.6B plant here in the United States of America and create 4K new American jobs".

A Toyota automaker employee moves an engine at the Toyota engine assembly line in Huntsville, Alabama November 13, 2009.

Toyota Motor Co. and Mazda Motor Corp. today officially announced that they've chosen Alabama as the site for their upcoming joint plant.


The new plant marks a significant milestone for Mazda, making it the zoom-zoom automaker's first US production plant.

A year ago, President-elect Trump criticized Toyota and threatened hefty tariffs against the Japanese automaker if it built its Corolla sedan for the USA market in Mexico.

"Toyota Motor said will build a new plant in Baja, Mexico, to build Corolla cars for U.S". The bill would allow local tax abatements for projects with capital investments over $100 million.

No details have yet leaked regarding any tax incentives provided by the state, though it's been suggested that Mazda and Toyota were seeking at least $1 billion in incentives.

President Donald Trump had criticized Toyota for taking auto production and jobs to Mexico. The companies have located there largely because of lower wages and to avoid the United Auto Workers union, which is stronger in Northern states.

Toyota now operates 10 plants in eight states including West Virginia, Kentucky, Indiana, Alabama, Mississippi and Texas. The decision to pick Alabama is another example of foreign-based automakers building US factories in the South. In addition to the existing Toyota engine plant it has plants for Hyundai, Honda and Mercedes-Benz.